tv [untitled] October 5, 2012 10:00pm-10:30pm PDT
>> thanks everyone. my purpose is mostly to be here to thank all of you for coming, so we have this opportunity to kind of examine what is going on in our real estate environment, and in particular, to thank the san francisco business times for putting on this event. and i think for most of us in this room, we rely very heavily on the san francisco business times to keep track of what is going on in san francisco, and the greater bay area, in the real estate world. and it is the best source of that information for all of us.
mary asked me if i would make a few observations about the general state of the real estate economy here in san francisco and as i do that, i always have to think about what to say that mary hasn't already said about it. and if you look at the real estate economy generally in our nation, and the fact that it is still soft. that we still need more jobs. that there is a recovery, but it's a slow recovery. you can't do that without thinking gee, will i sound like a politician for one or the other major political parties? and so i will steer clear of that and focus instead on san francisco and maybe we're living in a bubble, but it's a pretty wonderful bubble to be living in. the real question is the resurgence of real estate we're seeing now, is that sustained
growth? is that just, you know, for the moment? but as i look at it, we're putting in place an awful lot of things that shape what our city looks like in the future, how our city operates, how we interact with our city. as i started to think about that, i thought, you know, the number of major infrastructure projects going on in our immediate region now are probably -- there are probably more dollars and energy going into that than any time since bart was put through the city. you have the eastern span of the bay bridge. you have the transbay terminal. you have the central subway project. you have the improvement realignment of doyle drive. all of these things are part of the hard wiring of our city that is going to influence the way in which we all interact
with it. over the last, say, five to ten years, we have watched as development and interest and people have moved south of market, into mission bay, below that we now that is continuing and we now have projects on the table like the pier 70 project, which ten years ago no one would have thought was a viable mixed-use project, because nobody went there. and that part of it is no longer true. i think, you know, for all of the things that are going on in the new building that is in the ground, that is on the books, that is likely to happen this time around, both in terms of offices and housing, i think what i see as different is a difference in approach.
we all know that it's being driven by what the demographers are now referring to as "the urban tech." the social media companies, the high-tech companies, the creative workforces, who now want to live and work in urban environments, interact with their environments instead of work in suburban campuses that are fairly sterile and isolated. and that phenomenon has been going on to some time, but what really brought home some of the changes to me was a talk i heard earlier this week by alexa arena talking about the 5m project at 6th and mission, the conversion of the chronicle building and plant surrounding areas.
and she talked about the design process as being one of going out to constituencies, potential constituencies, focus groups, listening to people, trying to find out what they were looking for in collaborative, interactive work environments. and bringing the city into those work environments, and the connection and the need for amenities like cultural amenities and the arts and food and all of those kinds of things. and so instead of it being design professionals and people in the real estate industry sort of imposing on the world what they think the world wants, it is sort of coming the other direction. if that is, in fact, a new trend, i was not the only person who left that room sort
of saying, gee, i feel old, you know? in terms of this is a whole new way in which we're going to now be doing our business in the real estate industry? and i think today's speakers are going to focus on various parts of all of that. and i think that is a large part of what makes san francisco such an exciting environment now. so thank you everybody. [ applause ] >> thank you and thanks again to shephard mullen. so i'm not going to take a lot of time with the mayor's introduction, because i want to give him all the time and i know he has a busy schedule, but we do appreciate that he has continued our tradition of every year having our mayor speak at this event and sharing the vision, his vision for the future, focusing on some of the projects. he has a great presentation. we're excited and i know you
will learn quite a bit and hopefully be very inspired by it as well. i have to say when i hear mayor lee speak i always come away with a lot of optimism and confidence that the city is really moving forward. so we ask him to join us this morning and really kind of take us on a tour and tell us a little bit about what it's going to take to take some of these projects to fruition. so please welcome our wonderful mayor edwin lee, someone we're very proud of to have as our leader. mayor lee. [ applause ] >> thank you, mary and thank you very much. good morning >> good morning. >> well, i am very happy to be here today to address you and i do, as joan was talking, as mary was reporting earlier, i do remember a year-ago having been before you that we had just in addition, to the
projects that we had talked about, we had just closed out a $385 million deficit. we had introduced pension reform as we talked about it at that time to get the city in better economic gear. we had also chosen a new police chief by a year-ago and excited to see what that was. and then supervisor kim and i and david chiu had been fresh off of helping the company called twitter sustain the city and i want to thank supervisor kim, who is here today and we're working closely together to make sure we're doing it right. that all of the impacts that we can generate positively, not only on central market, but throughout her district and throughout the city. i also want to acknowledge other people that are working really hard, because my feeling in a year-ago was that after
all of those things that we did, and the work that we had done that first year, rest was my major focus. and after i met with you last year, rest was not on the agenda. absolutely not. in fact, we had gone right to work because there were so many of you who had also felt that the city could turnaround. you have given me and our staff investor confidence in this city as we move forward and there are so many things to report on. and i couldn't get much rest because i had a lot of other people who wanted to get to work as well. in the audience you have people like rodney fong and every time i look at his stacks that he brings into city hall every thursday to review all of the files you can't help, but to
say if he isn't going to rest i'm got no going to rest. john nagucchi at the tourism bureau, they are not resting and you have doreen woo ho at the part and america's cup and the whole staff working because waterfront, that is where it's happening. and so they are not resting. let me tell you the results of not resting for a year. san francisco businesses have created 22,500 jobs in last year. including 13 new jobs in the technology sector alone. unemployment during the last two years when i first began as your interim mayor went from 9.6 to 7.6, two full digit points during that time. to translate that means 25,000
san franciscans are back to work this last year. and according to the recent department of labor report, san francisco, the metropolitan area had the strongest job growth in the last 12 months ending in july of 2012, and let me repeat, the strongest job growth in the country. no. 1 in the nation. [ applause ] thanks to all of you. and i also want to just share with you something that supervisors and i have been discussing intently. because i know joan was going through a lot of the projects and so was mary and when we're investing in the brook and mortar and developments to also be sure, i think the most dynamic part of what our city is doing is that we're investing in our people. we're making sure that san
franciscans not only go to work, but they are part of and engaged with us in all of these developments. and that, to me, is refreshing and new, because that keeps us going when our own folks, people who live around the neighborhoods and people engaged in these developments help us do and get to the goal. in commercial real estate, the city experienced the strongest absorption rates since 1988 last year. this year we're looking to best ourselves with 780,000 square feet of positive absorption. don't let me tell you what the data is, because i think you can see it, if you drive around and see all of the different construction cranes. well, actually, if you try to drive around. [ laughter ] because i know there is a little frustration, but hopefully when you are stalled
in there and seeing these cranes and all of the construction and orange and yellow, you will know it's really worth it for the city to get better and stronger. we are in a construction boom and i just want to thank all of the construction companies here today. ones that do both interior and exterior, you are doing a great job and we're working with you to keep the city safe as we do these fantastic construction projects. we have been successful because we created the conditions to give investors and entrepreneurs confidence in our city, allowing them innovate, to grow and create jobs and whether they are in the neighborhoods, small businesses or international clean tech or new technological companies we are with them creating confidence in our city. investors are also confident because san francisco is also now financially responsible more so than years in the past, because we have done the right things with the cooperation between the mayor's office and the board to get our financial
house in order and to make sure pension reform is done and structure restorms are done in our budget. we're not going to rest on today's success. we are planning for the future and we're ensuring that our city remains strong and successful and solvent. and we want to make sure that we continue to be the innovation capital of world. for the first time in years we have had a lot of unity to account for and to move our city forward. business and labor, the mayor, and the board of supervisors, we have all been coming together on issues that affect all of us, tax reform, housing, fixing our parks and open space, fixing our streets. this year we have come together in an unprecedented way to put these issues to the ballot, because we agree it's the right time for smart and long-term investment in our city and in
housing and in parks and in tax reform. together we're putting people back to work and building our city at the same time. now it's time to reform our tax structure. a lot of people ask me, well, mayor, what is this business tax reform? what is it all about? it's very complicated. well, i will tell them it's about real people, about business, and about real jobs. because it's now that we're the only city in the state of california that has a payroll tax, literally a tax on job-creation. it doesn't make sense. so i'm happy to report that we at last are reforming our business tax structure to stop taxing jobs. and help companies large and small to stay here, to grow here, and to continue starting here as well. we need to protect existing jobs and we need to spur job-creation. our consensus measure, which is by the way proposition e on the
ballot this year will generate new revenue for housing, economic development and critical infrastructure like muni and roads and, in fact, it received 100% agreement with the board of supervisors. and because of growing and vibrant economy requires growing and diverse supply of new housing, we have also agreed on a housing trust fund, creating a permanent source of revenue to fund the production of housing in san francisco. it will ensure our city continues to be a viable place for everyone to live at every different economic spectrum. i remain committed to stabilizing and increasing middle to low-income housing, because building more affordable housing and middle-class housing will build our economy and grow jobs and help families stay in san francisco. and we need to continue to
invest in infrastructure needed in our city. san francisco needs quality parks and open spaces for its residents, and families. so parks and open spaces are our most unique and precious assets. you visit any major city in the country, you will know that they are proud of their parks and so are we. and so proposition b on the ballot is our parks and open space bond for $195 million. and it's a great synergism as we identify open spaces that improve both settings for not only our visitors, but for familis to visit as well. we all know if you don't fix it today, you will pay for it in the long run. aging infrastructure exacerbates costs and stretches resources and we need to do it
strategically and i have been very proud of all the city departments, all of the departments who have had the responsibility for maintaining our assets. that they have painstakingly adhered to a goal, a program that we have, the ten-year capital infrastructure plan. because every year and every other year we go out to the public and say to them as we do with our parks bond and as we do with our other bonds and we have done with our general hospital, no matter how big it is and no matter how important it is, we will keep it responsiblely under your property taxes and we will deliver these projects on-time and within budget. and to-date, all of the 2008 parks bonds projects are all underbudget and the $195 million parks bond will in and of itself create in some 1300 jobs.
ladies and gentlemen, we can't move backwards. we can't rest. we have got to move forward. so something that i hope you wouldn't have seen on the november ballot was a move to tear down our hetch hetchy and i have said it time and time again, this is a dangerous and misguided effort that will cause disaster for our economy and for our environment. so that is why it's been labeled "prop f." [ [ laughter ] [ applause ] so please make sure that you help us to defeat that some people are suggesting that we can tear down our hetch hetchy dam and get enough water for our businesses and residents and i tell you there is absolutely no way. that is all that is on ballot and let's look forward to what we're doing on our major development projects.
as mentioned by joan earlier, four cities, 5m will preserve the iconic chronicle building, convert four acres of underutilized parking lots and industrial structures into an urban mixed-use campus. thank you, alexa arenas for taking this ground breaking project and making sure that the innovative companies that are the life blood of our city are taken care and thank you very much for joining us this morning. [ applause ] the moscone expansion project "[ys3xconventi center remains the linchpin of our city's tourism and thank you for working with us. along the waterfront, mixed use developments are being planned at seawall lot 337 and pier 70,
which will create vibrant neighborhoods. and in less than five years, we're going to be welcoming the golden state warriors here, back to san francisco! [ applause ] i want to thank joe and peter for their vision and i want to especially thank the leadership of rick, who is here today at our table for helping us convert a derelict pier that has had so many struggles and help us transform that into an iconic facility that will bring thousands of people out and i want to thank supervisor kim and i think in the audience today, i understand the head of our community advisory committee, katie ladelle is with us. thank you, because there is no rest for you. [ laughter ]
[ applause ] >> the end game is to connect with everybody who is impacted, because that is what the warriors want. they want the whole city excited about the idea. i am excited about it and we'll get it done rick, because it's the greatest thing for our city. working together we're developing area plans that will shape the city for years to come. from the transit center district plan anchored by the new transbay center, which will provide space for 27,000 new jobs, 4,000 new housing units, a thousand new hotel rooms and 12 acres of new open space. to the central corridor plan, which will enable south of market tech hub and create jobs for up to 30,000 new jobs and 10,000 new housing units. we are diligent and creatively planning for the jobs of the future. but we must executive these plans consistent with the city's values. we'll need to make sure all the
businesses and commercial districts are places where we're welcoming everyone to live, to work, to shop, to eat and to play. and we need to make sure that they are pleasant, they are walk able and they are active around-the-clock and that they are green. and then we need to roll up our sleeves and simply get it done. take these bold plans imbued by the city's values and make it happen. i want to spend the rest of the time this morning with you to take a step back and look at the amazing transformation that is underway in mid-market. you know last april we passed a payroll tax exclusion to encourage twitter and other companies to take a second look at this neighborhood. and look at what we have accomplished today. eight technology companis have
occupied or leased or purchased more than 800,000 square feet. 3300 residential units under construction in and around mid-mark. five new performance and gallery venues opened up the last year, with four more in the pipeline including atr's renovation of the strand theater into a 300-seat theater. eight new small businesses opened in the past year, as well as two expansions of existing storefront businesses, and more is on the way. let's take a walk down the street, because it's kind of hard to see until you really walk it yourself. that is why today i want to walk with you through central market block-by-block and talk to you about what is really underway. so let's start here. on our tour at 5th street, with
city place, which has an apt and very appropriately new name. it is called market street place. the project will become 260,000 square foot retail center, which we expect to break ground next year. across the street, 950 market is a conceptual project, a collaboration of non-profit organizations, and art groups and funders to create a mixed-use project. this is a critical part of market street, which must be developed and occupied by uses that will be active, vibrant and community-friendly. down the block at 989 market was the first building to be occupied by a tech company last year and just last month they were joined by zeus, the
romantic social network that i know all of you who are single in this rooms have used [ laughter ] and i suspect some of you who aren't single may have used it as well. [ laughter ] zeus started in 2007 with just a handful of enterprising engineers and they grew and grew until they realized they were out of space and had to move. i'm pleased to be joined by the ceo of zeus. thank you very much for being here. [ applause ] they will set you up if they want to come down. today zeus has 125 employees and they are looking to hire another 20. zeus is truly a san francisco start-stay-and-grow story. thank you for your support of
san francisco. you will find dotty's cafe and, by the way, when dotty's opened up, they were half the size they are today. now they are opened up and they are twice the amount of size and you still can't get in without standing along the alley way and waiting for your turn. that is wonderful. and machine coffee was able to open as more employees come to the neighborhood. at the corner of jones, the majestic bank will move forward with the next few months and you have seen that construction fence around it. and you think nothing is happening in there. there has been a lot happening
and i'm very, very excited to help reopen that in very short time. two projects are fostering tourism in san francisco. they are on central market the old grant building and the renoir hotel. you have to know for the grant building, when i first started my job in san francisco government, i was at the human rights commission. we were housed in that old grant building. so i know how that feels, and time has come around because many of you know that my campaign office was on mid-market and it's a constant reminder to me this is a place to invest. with the two other projects fostering tourism on central market is the old grant building and the renoir hotel. the grant building was purchased a few years ago and is undergoing renovation to create an upscale youth hostel. and here we are between 7th and
8th, the renoir hotel was recently purchased by the core group, who is planning a major upgrade to the building and meantime while this upgrade is going on, the new ownership has activated the storefronts. taking up the majority of the block, trinity place is the most ambitious project in the area. currently in phase 2 of a 1900-units housing development. and you can see the construction whether from 8th and market or 8th and mission that construction is going on. between 8th and 9th, you are bond to see a hard hat or two. in june, dolby purchased the old state compensation fund building for their new headquarters and space, which can accommodate a ho